Defense Business Briefing -- Dec. 8, 2020

Welcome to today's Defense Business Briefing, your weekly roundup of the latest defense industry news.

This week's top story

Northrop to divest federal IT and mission support services business; will be combined with Peraton

Northrop Grumman has agreed to sell its federal IT and mission support services business to private equity-firm Veritas Capital, which owns Peraton, for $3.4 billion in cash.

News & notes

Huntington Ingalls CFO says company doesn't expect to be 'made whole' on COVID program delays

The chief financial officer of Huntington Ingalls said while the company expects to be reimbursed for COVID-19 costs like testing and facility cleaning, it does not expect to "be made whole" when it comes to pandemic-related program delays.

DOD axes nine Defense Business Board members to bring in Trump loyalists

Acting Defense Secretary Chris Miller announced nine members of the Defense Business Board have been terminated and replaced.

Defense primes seek details from subcontractors on initial compliance steps with DOD's new cyber regime

The Pentagon's approach to making cybersecurity a foundational part of acquisition is mandating new compliance requirements for the defense industrial base, which could potentially create a division between primes and subcontractors when it comes to information sharing.

Mercury to acquire Physical Optics

Mercury Systems said it has agreed to pay $310 million for Physical Optics, which designs and integrates avionics and mission subsystems for defense.

SAIC reports increased sales, profit

Science Applications International Corp. said sales in its most recent quarter totaled $1.8 billion, up almost 12% from the same three-month period a year earlier.

NuWave acquires BigBear

NuWave Solutions said it has acquired BigBear, which specializes in cloud-based big data analytics for national security agencies.

FLIR acquires Altavian

FLIR Systems said it has acquired Altavian, which builds small unmanned aerial systems for defense and public safety customers.

Appointments & promotions

Blue Origin names former top defense and intelligence officials to new board

Blue Origin, the space company founded by Jeff Bezos, said it has formed a board of advisers to "provide strategic counsel on the company's mission to radically reduce the cost of access to space and the utilization of in-space resources."

Noblis taps Hickok to lead defense area

Noblis said it has named Glenn Hickok vice president of its defense mission area.

What's happening

The week ahead

Congress this week is expected to pass the fiscal year 2021 defense bill, though President Trump has threatened a veto. Senior defense officials are also scheduled to speak at several virtual events.

For Inside Defense subscribers

CMMC assessment guides postpone outlining 'scope' of certification for Pentagon contractors

The Defense Department is delaying defining the "scope" of its Cybersecurity Maturity Model Certification assessments for maturity levels one and three in the first editions of its assessment guides, which assessors say will impact the ability to conduct a comprehensive audit.

Industry groups weigh in on CMMC costs, guidelines for assessment as DOD interim rule takes effect

Industry groups across a range of sectors are asking the Defense Department to provide more details on how its new cyber certification program will affect government contractors.

Defense Business Board, before shake-up, called for transition team to move quickly

In a report issued last month, the Defense Business Board recommended the presidential transition team have at least 13 Defense Department appointees confirmed to begin work immediately after the Jan. 20 inauguration.